Conceptual Framework & Accounting Standards (ACCTG 103)
Learning Objectives
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Overview of Accounting
1. Define accounting and state its basic purpose.
2. Explain the basic concepts applied in accounting.
3. State the branches of accounting and the sectors in
the practice of accountancy.
4. Explain the importance of a uniform set of financial
reporting standards.
Conceptual Framework for Financial Reporting
1. State the purpose, status, and scope of the Conceptual
Framework.
2. State the objective of financial reporting.
3. Identify the primary users of financial statements.
4. Explain briefly the qualitative characteristics of
useful information and how they are applied in
financial reporting.
5. Define the elements of financial statements and state
their recognition criteria and their derecognition.
6. State the measurement bases used in financial
reporting.
PAS 1 Presentation of Financial Statements
1. Enumerate and describe the general features of
financial statement presentation.
2. Enumerate and describe the components of a
complete set of financial statements.
3. State the acceptable methods of presenting items of
income and expenses.
4. Differentiate between the statement of profit or loss
and other comprehensive income and the statement of
changes in equity.
5. State the relationship of the notes with the other
components of a complete set of financial statements.
PAS 2 Inventories
1. Define inventories.
2. Measure inventories and apply the cost formulas.
3. State the accounting for inventory write-down
reversal thereof.
PAS 7 Statement of Cash Flows
1. Describe the statement of cash flows.
2. Differentiate between the following: (1) Operating
activities, (2) Investing activities, and (3) Financing
activities.
3. State the classifications of the following in a
statement of cash flows: (a) dividends received, (b)
dividends paid, (c) interest paid and (d) interest
received.
PAS 8 Accounting Policies, Changes Accounting Estimates
and Errors
1. Define the following and give examples: (1) Change
in accounting policy, (2) Change in accounting
estimate, and (3) Error.
2. Differentiate between the accounting treatments of
the following: change in accounting policy, change in
accounting estimate, and correction of prior period
error.
PAS 10 Events after the Reporting Period
1. Define events after the reporting period.
2. State the accounting requirements for events after the
reporting period.
PAS 12 Income Taxes
1. State the scope and the fundamental principle of PAS
12.
2. Interpret the terminology used in the accounting for
current and deferred taxes.
3. State the recognition, measurement and presentation
of current and deferred taxes.
PAS 16 Property, Plant and Equipment
1. State the recognition criteria, initial measurement,
and subsequent measurement of PPE
2. Apply the principles of PAS 16 in basic computations
of a PPE's cost, depreciation, carrying amount, and
revaluation surplus as well as the gain or loss on its
disposal.
PAS 19 Employee Benefits
1. Differentiate between benefits under PAS 19.
2. State the timing of the recognition of employee
benefits.
3. Differentiate between a defined contribution plan and
a defined benefit plan.
4. State the accounting procedures for defined benefit
plans.
PAS 20 Accounting for Government Grants and Disclosure
of Government Assistance
1. Explain the recognition and measurement of
government grants.
2. Explain the presentation of government grants in the
financial statements.
PAS 21 The Effects of Changes in Foreign Exchange Rates
Learning Objectives
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1.
2.
3.
Differentiate between the two ways of conducting
foreign activities
State the initial and subsequent measurements of
foreign currency transactions.
Describe the procedures in translating financial
statements into a presentation currency.
PAS 23 Borrowing Costs
1. State the core principle under PAS 23.
2. Compute for borrowing costs that are eligible for
capitalization.
PAS 24 Related Party Disclosures
1. Enumerate examples of related parties.
2. Describe the disclosure requirements for related
parties.
PAS 26 Accounting and Reporting by Retirement Benefit
Plans
1. State the applicability of PAS 26.
2. Describe the accounting and reporting requirements
of PAS 26.
PAS 27 Separate Financial Statements
1. Describe the applicability of PAS 27.
2. Describe the measurement bases allowed under PAS
27.
PAS 28 Investments in Associates and Joint Ventures
1. Define an investment in an associate.
2. Describe the accounting requirements for investments
in associates and joint ventures.
PAS 29 Financial Reporting in Hyperinflationary
Economies
1. State the core principle under PAS 29.
2. Describe the restatement procedures under PAS 29.
PAS 32 Financial Instruments: Presentation
1. State the definition of a financial instrument.
2. Give examples of financial assets and financial
liabilities.
3. Differentiate between a financial liability and an
equity instrument.
4. State the requirements for offsetting financial assets
and financial liabilities.
PAS 33 Earnings per Share
1. Explain how basic EPS is computed.
2. Explain how diluted EPS is computed.
1.
2.
3.
Define an interim financial report.
State the scope and applicability of PAS 34.
Briefly describe the recognition and measurement
principles applied in interim financial reporting.
PAS 36 Impairment of Assets
1. State the core principle of PAS 36.
2. Account for the impairment of individual assets and
cash generating units.
3. Account for the reversal of impairment.
PAS 37 Provisions, Contingent Liabilities and Contingent
Assets
1. State the recognition criteria for provisions.
2. Differentiate the accounting requirements for a
provision, a contingent liability and contingent asset.
3. Describe the measurement of a provision.
PAS 38 Intangible Assets
1. Define an intangible asset.
2. State the initial measurement of intangible assets that
are (a) externally acquired and (b) internally
generated.
3. State the subsequent measurement of intangible
assets that (a) have finite useful life and (b) indefinite
useful life.
PAS 40 Investment Property
1. Define an investment property.
2. State the initial and subsequent measurements of
investment property.
3. Apply the fair value model of accounting for
investment property.
PAS 41 Agriculture
1. Differentiate the following: biological assets, bearer
plants, agricultural produce and inventory.
2. State the initial and subsequent measurement of
biological assets and agricultural produce.
3. State the accounting for government grants that are
within the scope of PAS 41.
PFRS 1 First-time Adoption of Philippine Financial
Reporting Standards
1. Describe who a “first-time adopter” is and what the
“first PFRS financial statements” are.
2. Describe the general requirements of PFRS 1.
PFRS 2 Share-based Payment
1. Define a share-based payment transaction.
PAS 34 Interim Financial Reporting
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2.
3.
4.
State the measurement basis for share-based payment
transactions with (a) non-employees and (b)
employees.
Compute for the salaries expense on share-based
compensation plans.
State the accounting for share-based transactions with
cash alternatives.
PFRS 3 Business Combinations
1. Define a business combination.
2. Explain briefly the accounting requirements for a
business combination.
3. Make basic computations of good will.
PFRS 5 Non-current assets Held for Sale and Discontinued
Operations
1. Describe the criteria for held for sale classification.
2. State the initial and subsequent measurement of held
for sale assets.
3. State the presentation requirements of a discontinued
operation.
PFRS 6 Exploration for and Evaluation o f Mineral
Resources
1. Explain the accounting for exploration and evaluation
expenditures.
PFRS 7 Financial Instruments: Disclosures
1. State the two main categories of disclosures under
PFRS 7.
2. State the types of risks required by PFRS 7 to be
disclosed.
PFRS 8 Operating Segments
1. Define an operating segment.
2. Describe the "management approach"to identifying
reportable segments.
3. State the quantitative thresholds in identifying
reportable segments.
PFRS 9 Financial Instruments
1. State the classifications of financial assets and their
initial and subsequent measurements.
2. State the classifications of financial liabilities and
their initial and subsequent measurements.
1.
2.
Define a joint arrangement and state its
characteristics.
Differentiate between a joint operation and a joint
venture.
PFRS 12 Disclosure of Interests in Other Entities
1. Describe the objective of PFRS 12.
2. State the types of investments that are within the
scope of PFRS 12.
PFRS 13 Fair Value Measurement
1. Define fair value.
2. State the principles used in measuring fair value.
PFRS 14 Regulatory Deferral Accounts
1. Describe the applicability of PFRS 14.
PFRS 15 Revenue from Contracts Customers
1. State the five steps in the recognition of revenue.
2. Describe how performance obligations are identified
in a contract.
3. Describe how the transaction price is allocated to the
performance obligations.
4. State the timing of revenue recognition and its
measurement.
5. State the presentation of contracts with customers in
the statement of financial position.
PFRS 16 Leases
1. Identify a lease.
2. Describe the general recognition and recognition
exemption relating to the accounting for leases by a
lessee.
3. State the lease classifications by a lessor.
4. State the indicators of a finance lease.
5. Describe the accounting for finance leases and
operating leases by a lessor.
PFRS 17 Insurance Contracts
1. State the scope and applicability of PFRS 17.
2. Describe the level of aggregation and measurement
of insurance contracts.
PFRS 10 Consolidated Financial Statements
1. State the elements of control.
2. Describe the consolidation procedures.
PFRS 1 Joint Arrangements
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